Hiring a Nanny in Salt Lake City: Understanding Nanny Laws and Starting Payroll
As a parent, hiring a nanny is one of the biggest decisions you can make for your family. It’s exciting, a little overwhelming, and definitely full of questions—especially when it comes to the legal and financial side of things. If you're in Salt Lake City and thinking about hiring a nanny, here's a professional guide to help you navigate nanny laws, taxes, and payroll with confidence.
Step 1: Understand Utah Nanny Employment Laws
Let’s get the biggest question out of the way: yes, your nanny is considered an employee, not an independent contractor. That means you're legally required to follow employment laws, even if it feels like a personal arrangement.
Key Utah Employment Guidelines:
Minimum Wage: As of 2025, Utah follows the federal minimum wage of $7.25/hour. That said, most professional nannies in Salt Lake City earn $25–$40+/hour, especially for full-time or household manager roles.
Overtime Pay: Nannies who are not live-in employees and work over 40 hours per week are entitled to time-and-a-half pay under the Fair Labor Standards Act (FLSA). Live-in nannies are generally exempt from overtime requirements.
Paid Time Off (PTO): Utah does not require employers to provide paid vacation or sick leave. However, it is considered best practice to offer benefits such as:
Two weeks paid vacation per year
Paid holidays (federal or mutually agreed upon)
Paid sick days (commonly 3–5 days per year)
Use-It-or-Lose-It Policies: These must be clearly documented. If not, unused PTO may be considered earned wages and must be paid upon termination.
Workers' Compensation: Required in Utah if your nanny works 40 or more hours per week. Even if not legally required, many families choose to carry it to protect both parties.
Step 2: Set Up Legal Payroll (Don’t Panic, It’s Easier Than You Think)
Handling nanny payroll in Salt Lake City doesn’t have to be complicated. But yes—you do need to report your nanny’s wages to the IRS and the Utah State Tax Commission.
Here’s what you’ll need to do:
Get an EIN (Employer Identification Number) from the IRS.
Register with the Utah Department of Workforce Services to report state unemployment taxes.
Verify your nanny can legally work in the U.S. (complete a Form I-9).
Withhold and pay taxes: This includes Social Security, Medicare (FICA), federal and Utah state income taxes, and unemployment insurance.
Provide a W-2 at the end of the year so your nanny can file taxes.
Pro tip: Use a payroll service that specializes in household employers. Trust me, it’s worth every penny for the peace of mind.
Step 3: Write a Contract That Works for Everyone
A clear, detailed nanny contract protects both you and your caregiver. It should cover:
Schedule and duties
Hourly rate and overtime
PTO, sick days, and holidays
House rules and screen-time expectations
Mileage reimbursement (if using their own car)
Terms of termination and notice
Even if you're hiring someone you already know, having it in writing makes everything easier and more professional.
Step 4: Think About Benefits (Yes, Even as a Household Employer)
Want to attract and keep great talent? Think like a small business:
Paid holidays and vacation are standard in Salt Lake City's professional nanny market. PTO is typically 2-6 weeks for full-time positions.
Health insurance stipends are becoming more common. $100-Full Coverage
Guaranteed hours offer stability for your nanny and peace of mind for you. A requirement for most professional nannies.
Remember: investing in your nanny is investing in your child’s well-being.
Bonus: How to Find a Great Nanny in Salt Lake City
Now that you know the legal stuff, what about the heart of it all—finding someone amazing? That’s where we come in.
At The Natural Nanny Collective, we match families with experienced, engaging nannies who align with your parenting values. Whether you need a full-time nanny, a Rota Nanny, or someone trained in RIE®, Montessori, or Waldorf, our Salt Lake City team is here to help. We handle the vetting, background checks, reference calls, and contracts—so you can focus on what matters most: your family.
Final Thoughts
Hiring a nanny in Salt Lake City doesn’t have to be stressful. With the right guidance, a little paperwork, and a supportive agency by your side, you can create a beautiful, legal, and lasting relationship with your nanny.
Ready to start your search? We’d love to help!
Please note that this is not legal advice. Make sure to also consult with a tax or legal professional *
